Question: A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 14 years. The current YTM on the bond

A bond with a $1,000 face value has a 6% annual coupon rate. The bond matures in 14 years. The current YTM on the bond is 3.6%. If you were to buy this bond and hold it for 5 years, how much would the price change while you hold it? Assume the bond's YTM remains the same. Answer in dollars and round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Compute and compare the prices under the two scenarios.]

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